Koenig-Saab deal falls through

A death knell could be sounding for the Swedish brand in Australia.

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A marriage between Saab and Swedish performance car maker Koenigsegg is over even before the ceremony was finished, raising questions of the brand?s long-term viability in Australia.

General Motors, Saab?s cash-strapped US-based parent, issued a brief statement overnight announcing the merger would not take place after Koenigsegg pulled out of the deal.

??We're obviously very disappointed with the decision to pull out of the Saab purchase," GM president Fritz Henderson said in a brief two-paragraph statement announcing the breakdown in the sale process.

The new Saab 9-5

??Many have worked tirelessly over the past several months to create a sustainable plan for the future of Saab by selling the brand and its manufacturing interests to Koenigsegg Group AB,?? Mr Henderson said.

??Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week.??

Up until yesterday?s surprise announcement, the Koenigsegg deal had looked solid. The Swedish car maker had even announced it had struck a deal with a Chinese investor that was keen to expand the Saab line-up into China and other untapped markets.

saab_puff

In Australia, Saab is lumped into a division of Holden known as GM Premium Brands alongside Hummer, which was sold last month to a Chinese company called Sichuan Tengzhong Heavy Industrial Machinery, and Cadillac, which late last year came within weeks of launching in Australia before GM?s financial woes forced Holden to abort the effort.

Saab has already withdrawn its 9-5 mid-sized sedan and wagon range from Australian showrooms ahead of a new model that is supposed to be due some time next year, and revised its 9-3 line-up.

Its local division has not even issued a media statement since February this year.

Sales to October this year are down 35 per cent on the same period last year, while monthly sales slumped almost 77 per cent compared with October last year with cars leaving the showroom at the rate of three every fortnight.

In contrast, Hummer sales have halved so far this year, with the number of cars leaving dealerships last month equating to almost two a week. GM Premium Brands director Parveen Batish was unavailable for comment.

A statement from Holden said the company was still digesting the news from Sweden, but in the meantime it was business as usual.

??Warranties will continue to be honoured, servicing arrangements remain unchanged and there will be no issues with receiving spare parts,?? the statement said.

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